Lease Accounting Implementation and Compliance | Chicago, ILOvercome the compliance challenge before year-end.
ASC 842 Lease Accounting Standard Implementation – Chicago, IL
Businesses in Chicago and across Illinois enter into lease agreements for access to office space, upgraded equipment, new vehicles, more efficient production machinery, and many other reasons. These are especially useful arrangements when purchasing is not possible or does not make financial sense. However, recent changes to lease accounting rules (ASC 842) mean that drastic changes to how leases are identified, disclosed, and accounted for have significantly changed. These new rules require a complete analysis, accounting, and disclosure of all leases, including those embedded in service contracts, to enhance reporting transparency. Unfortunately, the new rules are complicated, and implementation by January 1, 2022, deadline may prove overwhelming for those with dozens of leases.
The new accounting rules are designed to provide increased clarity about leases and prevent misrepresentation of the impact on a company’s financial position. In addition, the changes ensure alignment with International Financial Reporting Standard (IFRS) practices and the new Revenue Recognition Standard (ASC 606).
Illinois Small Business Profile
Chicago Lease Standard Implementation Services
- Determine the impact on your debt covenant or other calculations and lead discussions with the primary users of your financial statements and other stakeholders as necessary.
- Assist with identifying the lease population, ensuring completeness, and accumulating all executed agreements and amendments.
- Populate the lease accounting model and calculate the right of use asset and a lease liability.
- Provide guidance on significant judgmental assumptions inherent in the calculations.
- Lead and facilitate training for your employees.
- Review the implementation journal entries and advise on recurring entries to be recorded post-implementation to ensure accuracy.
- Assist with the maintenance of the model for new leases, amendments, terminations, etc.
- Advise as necessary on technical lease accounting matters, including modifications, amendments, expansions, tenant improvement allowances, etc.
- Assist with drafting the required footnote disclosures for the financial statements for the year ended December 31, 2022.
Chicago ASC 842 Experience
Moore Colson, an Atlanta-based CPA firm, provides lease accounting implementation and compliance services to companies in Illinois. Our team members have significant experience helping management tackle the challenge of compliance – from lease identification through financial reporting changes. Our practical experience allows us to navigate the complexities of implementation, make the correct calculations and convey the impact on financial statements, disclosures, debt covenant calculations, and other financial metrics.
Map of Chicago (IL)
Moore Colson also offers lease accounting compliance and consulting services to companies in New Orleans (LA), Little Rock (AR), Birmingham (AL), Jackson (MS), Jacksonville (FL), Nashville (TN), Charlotte (NC), Charleston (SC), and Atlanta (GA).
Contact Our Chicago Lease Accounting Team
Moore Colson provides lease accounting implementation and compliance to companies in Chicago and across Illinois. If you are interested in learning how we can assist your organization, complete the form below and a team member will follow up with you promptly.